Michael Saylor, executive chairman of Strategy, says Bitcoin’s volatility has declined significantly despite growing institutional participation in the market.
“I think we are getting a lot less volatility,” Saylor said during an interview when asked whether Wall Street’s involvement has affected Bitcoin’s price behavior.
His comments come as Bitcoin has recently fallen nearly 12% over the past week, reversing part of the gains it made earlier in the year.
Declining Volatility Over Time
Saylor said that when he began purchasing Bitcoin for Strategy in 2020, the asset carried an annualized volatility around 80%.
He now believes that measure has dropped to around 50%.
He added that Bitcoin continues to mature and could see volatility decline by another five points every few years.
Saylor said he expects Bitcoin to eventually become roughly one and a half times as volatile as the S&P 500 while also outperforming it.
Strategy’s Position Through the Downturn
“Bitcoin is stronger than ever,” Saylor said, noting that Strategy now holds more than 649,000 Bitcoin.
The firm’s mNAV multiple — a measure comparing Strategy’s stock price to the value of its Bitcoin holdings — has fallen from earlier highs as Bitcoin’s price retraced.
Strategy’s stock has also moved lower over the past several days, reflecting broader weakness in crypto-linked equities.
Confidence Despite Market Swings
Saylor said he would not be concerned even if Bitcoin experienced a deeper correction.
“The company is engineered to take an 80 to 90% drawdown and keep on ticking,” he said.
“So I think we’re pretty indestructible,” he added. “Our leverage is in the know, the level of the 10 to 15% going toward zero right now, which is extremely robust.”
Despite Saylor’s confidence, some analysts warn that Strategy could face pressure if Bitcoin enters a prolonged downturn.
Veteran trader Peter Brandt recently suggested that Bitcoin’s current chart could mirror a historical commodity bubble, which he said may leave Strategy temporarily “underwater.”
Saylor, however, maintains a long-term view and says the company is engineered for extreme volatility while continuing to accumulate Bitcoin.
